Reimagining Productivity in Healthcare to Unlock Trapped Value

Mark Jennings

Chief Solutions and Services Officer, Strasys

Defining productivity by value

Mark Jennings emphasised that productivity in healthcare should be defined by value and not just outputs. He pointed out that the NHS Long Term Workforce Plan predicts the need for a significant increase in staffing due to rising demand, despite heavily optimistic assumptions of productivity growth at twice the levels achieved over the decade before the pandemic. He criticised the NHS’s over-reliance on Cost Improvement Plans (CIPs), which, although necessary for balancing budgets in the short term, have not led to long-term improvements. He pointed instead to the idea of productivity prescriptions based on an understanding of actual patient and population need, and a reshaping of services to meet those needs. This connects to the core Decision Intelligence methodology.

Prof Sir Muir Gray

Director, Oxford Value and Stewardship Programme

Addressing waste in healthcare

Prof Sir Muir Gray, a value-based healthcare expert and Strasys OVSP partner, identified two major issues: unwarranted variation and inequity. He urged us to think less about cost reduction and more about waste reduction, explaining four types of waste in healthcare: waste left after a job has been done; waste due to low productivity and efficiency; waste when interventions do not achieve outcomes that matter or do more harm than good; and waste due to opportunity costs where resources would produce more value if used for another purpose. Addressing all four is crucial for creating value-based healthcare. Sir Muir outlined five steps: adopting a population approach, developing systems for subgroups, optimising personal value decisions, delivering equitable value through networks, and fostering a culture of stewardship.

Claire Wilson

President of the HFMA and Director of Finance, Cheshire and Mersey ICB

Financial and clinical teams working as one

Claire Wilson, CFO at Cheshire and Merseyside Integrated Care Board and President of the Healthcare Financial Management Association (HFMA), discussed the challenges and opportunities for NHS productivity. Claire argued that new integrated care systems present opportunities to drive value through collaboration. She emphasised the importance of a collective vision and the need to measure the right things to motivate clinical and operational teams. Her presidential theme for the HFMA is working as one across organisations, professional boundaries and the wider profession. The Strasys Value Index supports exactly this kind of cross-system value identification.

John Grinnell

CEO, Alder Hey Children’s NHS FT

A compelling vision

John Grinnell, CEO at Alder Hey Children’s NHS Foundation Trust, focused on the importance of a holistic workforce strategy in driving productivity. He shared how his organisation worked with Strasys to understand spending, identify value, and create a needs-based vision. This consumer-focused approach improved staff morale and led to significant productivity benefits. The Workforce Decision Intelligence work at Alder Hey demonstrated these principles in practice.

Dr Dilshaad Ali

Group CEO, Hoan My Medical Group

International perspective: Vietnam’s digital healthcare

Dr Dilshaad Ali, Group CEO of Hoan My Medical Group, provided an international perspective from Vietnam. He highlighted the country’s high internet penetration and digital technology use, which have improved healthcare accessibility. Dr Dilshaad discussed the importance of developing an omnichannel approach and continuous talent development through partnerships. The lessons for NHS leaders are clear: technology alone does not create value. It is the combination of digital capability, leadership commitment, and a focus on patient need that drives sustainable productivity improvement.

Key takeaways

Focus on value rather than just productivity. Use appropriate metrics to engage and motivate staff. Ensure initiatives reduce the current burden on staff. Foster constant innovation and a collaborative approach.

If your organisation is still relying on cost improvement programmes as the primary lever for productivity, a short conversation can clarify how a value-based approach could significantly improve planning, productivity and quality of care. No pitch. Just a practical starting point.

Further reading: In conversation with Prof Sir Muir Gray and Dr Nadeem Moghal. The Alder Hey case study.

Questions leaders ask about healthcare productivity

Why don’t cost improvement programmes fix NHS productivity?

Cost improvement programmes (CIPs) are necessary for short-term budget balancing but have not led to long-term productivity improvements. They focus on cost reduction rather than value creation. A value-based approach addressing waste, unwarranted variation, and population need is more effective. See how the Strasys Value Index reveals trapped value.

What is trapped value in healthcare?

Trapped value is the productive potential locked within healthcare systems that cannot be released through traditional cost-cutting. It includes value lost through unwarranted variation, waste from ineffective interventions, opportunity costs, and low productivity. Decision Intelligence helps identify and release this trapped value.

What are the four types of waste in healthcare?

Prof Sir Muir Gray identifies four types: waste left after a job has been done; waste due to low productivity; waste when interventions fail to achieve outcomes that matter; and waste due to opportunity costs where resources would produce more value elsewhere.

How does value-based healthcare differ from traditional productivity approaches?

Traditional approaches focus on outputs and cost reduction. Value-based healthcare focuses on outcomes that matter to patients, reducing unwarranted variation, and ensuring resources produce the greatest value for the population. Learn about the Strasys approach.